Is unsupervised disentanglement really impossible?
The impossibility is referring how to learn the disentangled representations from the observed distribution or to know whether you have a disentangled representation in the first place.

Basically, an unsupervised learning agent tasked with learning a disentangled transformation of some features $\mathbf{z}$ needs to infer a set of features from the data which are not entangled, but the supplied data will always have many equally valid entangled solutions - valid from the point of view of describing the distribution of $\mathbf{z}$ accurately.

An analogy would be "I have observed the value 50, and know it is the sum of 3 numbers. What are those numbers?". Whilst the correct answer exists, and it is possible to guess it, it cannot be inferred from the supplied information. 

The part of the proof you quote shows that the multiple equivalent entangled feature sets exist, and theoretically cannot be separated from a "true" disentangled feature set on the basis of knowing the distribution. Once you accept this, it is indeed just a short hop in logic to say that the disentangled features are not learnable - there is no way for a learning system to differentiate between the entangled and disentangled features that explain the distribution, and a large (infinite) set of valid entangled features are guaranteed to exist, which will confound attempts to find a perfect solution.

It is worth noting that the impossibility refers to learning perfect solutions, and that the proof does not rule out useful or practical approximate solutions, or solutions that augment unsupervised learning by applying some additional rules or a semi-supervised approach.